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8-K - 8-K - Dine Brands Global, Inc. | d674817d8k.htm |
Exhibit 99.1
APPLEBEES NEIGHBORHOOD GRILL & BAR PURCHASES
69 RESTAURANTS IN FRANCHISE TRANSACTION
Company announces successful transaction of 69 restaurants in North and South Carolina;
Comes to resolution with RMH franchise group following court decision
GLENDALE, Calif., December 13, 2018 Today, Applebees Grill and Bar announced the closing of the transaction purchasing 69 restaurants in North and South Carolina. The restaurants will be operated under industry veteran and Applebees chief operating officer, Kevin Carroll.
Through the third quarter of 2018, Applebees business performance has been the best its been in more than a decade as we continue to lead the casual dining category, says John Cywinski, Applebees brand president. Im pleased with this transaction and confident in our plans to evolve and selectively refine our restaurant portfolio. We are consistently reviewing our portfolio and making strategic decisions to better position our brand for the future.
Applebees same-restaurant sales increased 7.7 percent in the third quarter, a majority of which was driven by traffic, resulting in a third quarter year-to-date comp sales increase of 5.5 percent.
The transaction closed on December 12, 2018. The Corporation intends to own and operate these restaurants for the foreseeable future; however, we will assess and monitor opportunities to refranchise these restaurants under favorable circumstances.
Applebees is also pleased to announce that Dine Brands Global, Inc. has reached a settlement with RMH Franchise Holdings Inc. and its affiliates (RMH), an Applebees franchisee. As previously disclosed in the Corporations periodic filings, RMH filed for Chapter 11 bankruptcy in May 2018. The terms of the settlement, among other things, require RMH to pay Applebees all past due royalty and advertising fees. The Corporation will also receive in part, reimbursement of termination fees related to restaurant closures. Additionally, as a result of the settlement, all outstanding litigation between the parties will be dismissed.
Were pleased to have come to a resolution with RMH and its owners, Cywinski said.
We remain confident and look forward to 2019.
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About Applebees®
Applebees Neighborhood Grill + Bar offers a lively casual dining experience combining simple, craveable American fare, classic drinks and local drafts. All Applebees restaurants are owned and operated by entrepreneurs dedicated to serving their local communities, and offering quality food and drinks with genuine, neighborly service. Applebees is one of the worlds largest casual dining brands; as of June 2018, there were more than 1,700 Applebees franchise restaurants in all 50 states, Puerto Rico, Guam and 13 other countries. Applebees is franchised by subsidiaries of Dine Brands Global Inc. [NYSE: DIN], which is one of the worlds largest full-service restaurant companies.
Follow us:
Instagram: @applebees
Twitter: @applebees
Facebook: www.facebook.com/applebees
Media Contacts:
Current Marketing for Applebees
Mackenzie Woods / 312.929.0518
MWoods@talktocurrent.com
Applebees Grill & Bar
Susan Nelson / 818.637.3197
Susan.Nelson@applebees.com
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